I recently put an offer on a property for $10,000 in an okay area. Initially, the owner was asking $30,000 for the home. However, as I began to walk through the property, I discovered many issues and knew within 5 minutes that my offer would be much lower than what the owner was requesting. I pondered how I could justify offering a higher price for his property. Finally, I said to myself, "numbers don't lie" and stuck to my offer.
You see, when investing in real estate you have to be emotionless at times and not get attached to any property and strictly look at the numbers. Very often homeowners will over estimate the value of their home. Always focus on what will it take to rehab the property and how much could you sell or rent it for.